Macaulay Roller Skates has three product lineslong dashD, E, and F. The following information is available: D E F Sales revenue $ 70 comma 000 $ 40 comma 000 $ 30 comma 000 Variable costs (20 comma 000) (15 comma 000) (11 comma 000) Contribution margin $ 50 comma 000 $ 25 comma 000 $19 comma 000 Fixed costs (20 comma 000) (5 comma 000) (23 comma 000) Operating income (loss) $ 30 comma 000 $ 20 comma 000 $(4 comma 000) The company is deciding whether to drop product line F because it has an operating loss. Assuming fixed costs are unavoidable, if Macaulay drops product line F and does not replace it, what effect will this have on operating income?

A.

Operating income will decrease

$ 19 comma 000$19,000.

B.Operating income will increase

$ 23 comma 000$23,000.

C.Operating income will increase

$ 4 comma 000$4,000.

D.Operating income will increase

$ 19 comma 000$19,000